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Chrysler to enter the Chinese market Dodge Pathfinder import first
In the rapidly expanding imported car market in China, it is commonly believed that importing vehicles can elevate a brand's image. For Dodge, a relatively unfamiliar brand in the Chinese market, entering through imports has become an ideal strategy to establish its presence.
On February 26, Dodge made a bold statement in Beijing with a thrilling roller-skating event, hip-hop performances, and intense martial arts displays. Owen, the general manager of Chrysler (China) Automobile Sales Co., Ltd.'s marketing department, aimed to position Dodge as a symbol of youth, energy, and fashion. The choice of the iconic 798 Art District was not accidental—it reflects a desire to connect with the artistic and creative community in China.
Perhaps Irving, Dodge’s representative, hopes to attract customers who value individuality and style, especially among artists. At the Guangzhou Auto Show, Chrysler showcased the Dodge Kay, an MPV developed in collaboration with Southeast Automotive. Earlier this year, Dodge introduced the Feng Zhe model through the import channel. However, one challenge remains: many visitors to the 798 Art District were unfamiliar with the iconic ram logo on the vehicle.
Importing cars in China has proven to be a profitable strategy. According to customs data from 2007, China imported over 313,000 vehicles, including complete knock-down (CKD) parts, marking a 37.9% increase compared to domestic sales growth of around 22%. This trend has encouraged brands like Dodge to focus on the import market to boost brand visibility and profitability.
During the event, Irving emphasized that the new model is a powerful car with excellent safety features. Owen noted that compact cars are gaining popularity in China, which influenced the decision to launch this "cool" product. However, the market is dominated by German and Japanese brands, making it challenging for Dodge to stand out.
At the launch, Dodge did not clearly define its competitors. When asked about rivals, Owen mentioned Subaru, but the high price point of 230,000 yuan already sets it apart from many competitors. Before the launch, Chrysler conducted surveys and found that the pricing was appealing to potential buyers, especially since most crossover models in China are priced below 200,000 yuan.
For now, Dodge is focusing on the import channel, but there are plans for local production if sales reach a certain level. Owen said, “If Okubo’s sales in the import channel meet our expectations, we will consider producing it locally.â€
Building a strong sales network is crucial for achieving target sales. Chrysler has been expanding its dealership network in China, opening 70 stores in 2007, with a goal of reaching 140 by mid-2008. In contrast, Chrysler is streamlining its U.S. network by reducing the number of low-profit dealers.
Chrysler recently announced a plan called "Genesis," aiming to cut nearly half of its current models over the next few years. The company aims to simplify its product lineup and improve efficiency. Meanwhile, in China, Chrysler plans to introduce several new models this year, including the BBDC from Borui and the Jeep Wrangler.
While Chrysler is adjusting its pricing strategy in the U.S., offering discounts and free features on certain models, its approach in China remains focused on imports. The company is still refining its long-term strategy for the Chinese market, balancing between selling profitable models through imports and exploring local manufacturing.
Whether Chrysler can successfully navigate the challenges in China remains to be seen, but the stakes are high—losing the Chinese market would mean significant financial consequences.
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